All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Ethereum slipped hard after record highs, with over $829 million in longs liquidated across the crypto market overnight.
- Trump’s unprecedented Fed firing fueled panic, and September’s seasonal weakness drags Bitcoin, Ethereum, Solana, and Dogecoin lower.
The global cryptocurrency market faced intense selling pressure in the past 24 hours, leading to over $829 million worth of long liquidations. Major assets, including Ethereum, Solana, and Dogecoin, fell between 7%-12%, sparking renewed fears among traders.
Ethereum, which had touched a new record close to $5,000 earlier this week, tumbled back to $4,422.65. Despite inflows from Ethereum ETFs and firms like Bitmine and SharpLink, the recent correction suggests growing caution among institutional and retail investors.
Solana, XRP, and Dogecoin also fell sharply after hitting stiff resistance levels. At the time of reporting, Solana was priced at $188.59, XRP traded at $2.92, and Dogecoin dropped to $0.21. Thin liquidity in these tokens intensified the downward price swings.
The overall crypto market capitalization slipped 2.60% in a single day, settling at $3.79 trillion. This came after Federal Reserve Chair Jerome Powell’s remarks at Jackson Hole had briefly lifted digital assets in the prior week.
Trump–Fed Clash Adds Pressure to Crypto Market
Investors are on alert as September approaches, traditionally the weakest month of the crypto markets. Pundits believe that the prices could experience more turbulence before the usual October–November recovery sets in.
In the midst of this fragile sentiment, a political crisis unsettled the Crypto market further. US President Donald Trump fired Federal Reserve Governor Lisa D. Cook on Monday, the first-ever scenario in American political history where a sitting president has removed a voting member of the Fed.
Cook has strongly opposed the move. She said Trump does not have the right to dismiss her from office and confirmed that she is not going to resign. Her lawyer stressed that they will take “whatever actions are needed to prevent” Trump’s “illegal action.”
Investors Brace for September Fed Decision
In addition, uncertainty surrounding the Federal Reserve’s September policy meeting is causing volatility. Powell had indicated a potential rate cut in September, saying concerns over the declining labor market and persistent inflation had grown.
Based on CME Watch Tool data, the likelihood of a 25 basis point rate decrease is 84.7% right now. This view first favored risk assets such as Ethereum and Bitcoin, but a political confrontation between Trump and the Fed has shaken sentiment.
Market pricing now indicates a 35% probability of Bitcoin hitting $100,000 by the end of September, from 20% a week prior. For Ethereum, a 55% probability of returning to the $4,000 level is indicated.
With macro risks, political tension, and seasonality weakness converging, investors are fearful of further declines. Even with the recent inflows into Ether and bullish expectations for Bitcoin, the sell-off demonstrates shaky faith in September for digital assets.
